We now proceed to questions to the Minister for Communications, Energy and Natural Resources. The Minister will appreciate that we are starting much earlier than we anticipated.
Priority Questions
Question No. 1 is in the name of Deputy Timmy Dooley.
National Broadband Plan
Timmy Dooley
Question:1. Deputy Timmy Dooley asked the Minister for Communications, Energy and Natural Resources the total number of premises to be covered by the national broadband plan between State intervention and commercial operators, the latest timetable for implementation, the technology that will best future-proof its delivery, and if he will make a statement on the matter. [21806/16]
This is my first opportunity to congratulate you, a Leas-Cheann Comhairle, on your recent election.
Thank you.
I look forward to working with you.
I ask the Minister, in light of a recent announcement on the national broadband scheme, the general understanding was that approximately 757,000 homes would be covered by the scheme.
In the Minister's recent announcement, there was an indication that an additional 170,000 houses would be covered. Will the Minister assist the House in identifying what category of homes or business will be covered by that?
I congratulate the Leas-Cheann Comhairle on his election and look forward to working with him over this Dáil term.
The national broadband plan is a priority for the Government. The plan is being delivered through a combination of investment by telecommunications operators and a State intervention in areas where commercial investment is not forthcoming. This is reflected in the high-speed broadband map at www.broadband.gov.ie. The area marked blue on the map is where commercial providers have previously indicated plans to deliver high-speed broadband services. These represent 1.6 million premises. The area marked amber is the State intervention area and represents more than 750,000 premises. Individuals can check whether their premises is in a blue or amber area by entering their address or Eircode. They can also e-mail the Department, quoting their Eircode, at broadband@dcenr.gov.ie.
Last week, I announced that a further 170,000 premises will need to be covered by the State intervention. Further analysis is being undertaken by my Department to identify the exact location of these premises and to adjust the high-speed broadband map. The Department has moved to the next stage of the procurement process and three qualifying bidders will commence dialogue with the Department next week. This will be followed by the issue of final tender documents. The current schedule envisages contracts being awarded by June 2017. The timing of each stage of the procurement is dependent on several factors, including the complexities that may be encountered during the process. Once contract or contracts are in place, a prioritisation programme will be put in place in consultation with the Minister for Arts, Heritage and the Gaeltacht. A detailed roll-out plan for the network will be published and the Minister, Deputy Humphreys, is establishing regional action groups, working with local authorities, local enterprise offices, Leader groups and other relevant agencies to help accelerate the broadband network build.
In line with European Union state aid rules, the process must be "technology neutral". Bidders will be asked to propose solutions which meet the national broadband plan service requirements, which will include a separate solution for businesses and evidence that the network will be future-proofed to meet the ongoing demands and keep pace with developments elsewhere in the market. It is recognised that a significant fibre build will be required, regardless of the technology used to provide services to individual premises. Once the successful bidder or bidders are chosen, the technology to be deployed will be made clear.
As indicated, the Minister intends seeking a solution that provides a minimum of 30 Mbps for the connection speed. Europe has set a target of having a baseline of 30 Mbps connection speed across member states by 2020. It is now clear we will not meet that target as the indication is the national broadband plan will not be rolled out fully until 2022. Does the Minister believe, in light of this, that it might be better to jump ahead to what the European Commission has indicated is the premier benchmark, which is 100 Mbps connection speed by 2020? Rather than going for the baseline, could we be a bit ambitious as we will miss the base deadline anyway? I put to the Minister that he consider in his discussions with the three potential bidders that the 2020 target should be the premium benchmark, as established by the Commission, of 100 Mbps. We might dispense with the underachievement of the level now being spoken about.
The Deputy's initial question relates to the amending of the blue areas on the map. We announced last week that we would include another 170,000 homes and premises in this. We were given a commitment by the commercial operators which, in fairness, have put a significant amount of money - approximately €2 billion over the past four years - into rolling out the network. Nevertheless, it was clear that most of the approximately 170,000 premises identified by us as in the blue area might have had fibre passing the head of the road but the homes would not be able to get 30 Mpbs broadband. For example, it could be that the exchange is within 1 km as the crow flies but the copper wire could go in a circuitous route. That means the premises would not get those speeds. These are mainly areas within the vicinity of towns and we do not see an additional cost being involved as the build-out will already be taking place.
We could have a significant amount of the rural areas covered in time for the EU objective for 2020. I will not commit to a threshold of 2020 until the contractor or contractors are appointed but from what we are told, many of them seem to be determined to get this rolled out far quicker than we envisage. I do not want to promise people they will get broadband by a specific date but it is not achieved. Deputy Dooley and everybody else knows that we, in rural Ireland, are sick and tired of being promised dates for high-speed broadband only for it not to happen.
On the question of whether the 30 Mbps threshold should be increased to 100 Mbps, we picked 30 Mbps as the minimum required. We have indicated that a higher threshold is required for businesses, which are scattered right across rural Ireland. The solutions put forward by the three preferred bidders are likely to involve much higher speeds than the minimum threshold. It is important that the public understands that currently, there are operators promising up to 100 Mbps but, in reality, the speeds available are dramatically lower. We are saying that 99.95% of the time, people will get a minimum of 30 Mbps. That is a significant threshold and on top of that, businesses will require a much higher threshold. In reality, speeds will be significantly higher. There is a mechanism in the way the contract is structured to review this threshold every three to five years if the requirements exist for higher speeds. That will come about over the 25-year contract.
I accept the Minister's amenable approach to my request but the facts remain that the legal document will request a minimum of 30 Mbps. I accept that contractors are capable of delivering higher speeds but does it not make sense to request what is ultimately required rather than making it something that is nice to have or an option that will probably be taken? The truth is that all they will deliver is the minimum speed with the capacity to scale in time. My concern - I am sure it is shared by the Minister because of his understanding of rural Ireland, which nobody could question - is that we must ensure the people in the rural area covered by this scheme have exactly the same capacity to remain in step with people in the more densely populated areas, where there is greater competition and higher speeds can be delivered much more cheaply. If we are putting in resources now, let us force the companies to deliver the higher speed. Even if the Minister indicated the minimum would be 30 Mbps at the beginning before setting a target by which they had to reach 100 Mbps, I would find some solace in it. We must push the contractors and there is only one opportunity to do that, which is before they sign up.
The European Commission target of delivering 30 Mbps by 2020 is non-binding. Nevertheless, I hear what the Deputy is saying and he is making a strong point.
In fairness, there is unanimity in this House. We might disagree on some minor aspects regarding it but there is unanimity in the House that we need to get this rolled out quickly and that it is future-proofed in terms of the requirements. A tendering process is currently under way. We want to see the highest possible speeds available in the shortest possible time in as many communities as possible. It is our intention to make sure that when the network is being rolled out, it is to every county simultaneously. It is not a case that because Roscommon has the largest proportion of the population which requires high-speed broadband, it will be first or because Monaghan has the second highest proportion, it will be second.
Coincidentally, the two Ministers who are in charge of delivery of this programme come from Roscommon and Monaghan. We are determined, as is every Member of this House, whether from an urban area or a rural area, to roll out a network that is future-proofed and which meets the current and future requirements of home owners and businesses. I am taking note of the Deputy's comments.
Renewable Energy Generation
Brian Stanley
Question:2. Deputy Brian Stanley asked the Minister for Communications, Energy and Natural Resources to provide similar subsidies for solar power as are currently available for wind energy developments. [21699/16]
I congratulate the Minister, Deputy Naughten, on his elevation to the position of Minister for Communications, Energy and Natural Resources. I also congratulate the Minister of State, Deputy Kyne, as it is the first opportunity I have had to address him as Minister of State. I wish both Ministers well in their jobs.
My question is very straightforward. I ask that the solar power and energy industry gets a level playing field. The industry is only in its infancy and I believe we need to accelerate it.
I thank Deputy Stanley for the question. The programme for Government contains a specific commitment to facilitate the development of solar energy projects. The White Paper on energy policy published in December 2015 also includes a commitment to introduce a new renewable electricity support scheme designed to encourage the development of Ireland's abundant, diverse and indigenous renewable energy resources, including solar photovoltaic technology.
It is widely recognised that solar photovoltaic, PV, technology has become more cost effective for electricity generation over the past few years not only compared to other renewables such as wind energy but also compared with conventional forms of generation. With these significant changes in the cost of the technology, the deployment of solar PV technology in Ireland has only recently become a potential cost-effective option to increase energy security, contribute to our renewable energy targets and support economic growth and jobs. It is also recognised, however, that while the cost competitiveness of solar PV technology has improved, it would still require a subsidy in order to be developed on a commercial basis.
The REFIT, Renewable Energy Feed In Tariff, electricity support schemes are the principal means of supporting renewable electricity generators for renewable energy exported to the grid. These schemes support electricity generated from a range of renewable sources, including small scale hydro, biomass and wind. Small scale renewable micro-generation is eligible to apply for support under the REFIT schemes. My Department is currently undertaking in-depth economic analysis to inform the cost of a new renewable electricity support scheme. While no decision has yet been taken on the precise renewable technologies to be supported, and the appropriate level of tariffs are still under consideration, the cost and technical viability of a range of renewable technologies, including solar PV technology, is being assessed.
Designing and implementing a new scheme is a complex task and it is expected that the broad details of the new scheme will be available early next year. Before these details are announced, my Department will run a second public consultation, which will give all interested parties an opportunity to input into the design of the new scheme. Ultimately, the introduction of any new scheme will be subject to Government approval and state aid clearance by the European Commission.
I thank the Minister for his reply. Under the public service obligation, PSO, the current projection is that nearly 3,000 MW of renewable energy will receive €335 million in support in 2016-2017 while only 250 MW of fossil fuel will receive €140 million. The fossil fuel industry benefitted from €386 million in subsidies in 2015. That includes the PSO and the fuel allowance scheme. We support the fuel allowance scheme but we need to transfer that and move it on to renewables. When one considers these figures, it is €11,000 per megawatt for renewable power and €56,000 per megawatt for fossil fuel which is five times as much per megawatt. There is no support or subsidy in the State currently, of which I am aware, for solar energy. Wind, biomass, anaerobic digestion, hydro and biogas all receive feed tariffs but solar does not. Solar is the only established renewable technology to not benefit. It is a technology that is most suited to community and local participation with small ownership by local individual farmers or co-operatives. As a result, the solar energy industry is practically non-existent. Compare the situation to that which exists in Germany where 1.5 million German people generate solar energy from their own properties. I ask the Minister to take this consideration on board.
I understand the point being made by Deputy Stanley. As he is aware, a large part of the fossil fuel PSO is close to my heart, namely, peat fired energy generation in our three midland power stations. In fairness, I believe it is only because a predecessor of mine, Mary O'Rourke, happened to be in this job, we would not have those three peat fired power stations in the State. The intention is to convert those stations over to biomass and I am working quite closely with Coillte, Bord na Móna and the ESB in that regard and we hope to make progress. Bord na Móna has already given the commitment to be out of electricity generation with peat as a feed stock by the end of the next decade.
The issue is the PSO and at the last Question Time, Deputy Stanley's colleagues, as well as Members on the opposition benches, gave me a lot of grief over the cost of the PSO to consumers. In regard to the last analysis done in 2015 by KPMG on the cost of solar PV in Ireland, while the costs of solar have come down significantly, it is now costing in nearly €150 per megawatt. Wind costs €69.72 per megawatt for a large wind farm while it costs €72.16 for a small wind farm. Hydro costs €88 per megawatt. Under REFIT 3 biomass combustion costs €89 per megawatt and small biomass, in a combined heat and power system, costs €147 per megawatt. That is probably more congenial to communities getting involved in energy generation.
The problem has been that solar was far too expensive to produce up to now. However, the costs are coming down and I had a meeting last month with some manufacturers in China which are driving down the costs even further. Solar will definitely be part of the new scheme but exactly how that will be structured will have to be weighed up against meeting the targets which must be achieved and in finding a balance so that consumers are not paying an excessive PSO.
That is a fine line which must be drawn and I am being rightly criticised that there is no support for the solar energy industry because the Commission for Energy Regulation is increasing the price of the PSO to consumers. In this regard I see exactly where Deputy Stanley is coming from. The challenge is about trying to strike the right balance.
One minute remains for a supplementary. I call Deputy Stanley.
In regard to the PSO for the power stations, I recognise that reality. Until such time as we can supply them with biomass we have what we have. On the issue of the cost of solar, some people in the industry would question it. Other countries have more sunshine than Ireland and do not need sophisticated systems to get the benefit. We do have substantial sunshine and we have substantial potential. That area has not received enough attention from Government and the Department in the past.
The Minister of State is a fresh pair of hands in the job. He will receive the reports from his civil servants and the wind industry. I ask him to be his own person in regard to this issue. There are good examples of its success in London. London does not have that much more sunshine than Ireland. I lived in Edinburgh which is not the sunniest place in the world and it is much colder than here in winter. We should look at the examples from those areas to see how they do it. At the Select Committee on Communications, Climate Change and Natural Resources this morning the Minister of State mentioned the example of Scotland. That is one of the issues he might discuss with them. We need to keep this issue to the fore and to broaden it out. There will not be one or two large sources, there will be thousands of generation plants, small, medium and large, in ten to 20 years' time.
I do not disagree with the Deputy. I am glad to note that Sinn Féin is now using examples in London. He is right in saying there are good examples from elsewhere.
It is a good idea.
The difficulty with the UK model is that the level of subsidy involved has been significant. As a result the UK has dramatically reduced the level of subsidy for renewable energy so it is not actually a good model. I think there are good models abroad and we need to be open to those. I am open-minded to all of the technologies.
The Deputy is correct when he says there will be a range of solutions. I do not think we should put all our eggs in one basket. If the industry can come forward with better figures than those I will be open to them. Recently, the industry has been engaging with my officials in the Department who are working on the new support scheme. Given that we are talking about the issue of peat and the semi-State company that is close to both our hearts, Bord na Móna is exploring the co-locating of wind farms with solar farms to take account of the counter cyclical nature of these technologies. Wind is very strong during the short winter days and solar prevails during the longer summer days. Given that Ireland is so far north in relation to the hemisphere we have a significant amount of daylight. Daylight is what is important rather than sun. Perhaps the cost-benefit analysis needs to be tweaked to take account of that. I am open to the idea. I want to see different technologies being developed but I need to ensure I am not placing an unnecessary burden on consumers.
Media Mergers
Timmy Dooley
Question:3. Deputy Timmy Dooley asked the Minister for Communications, Energy and Natural Resources his views on the planned takeover of seven Irish radio stations by an organisation (details supplied) and the effect on Irish media plurality and diversity; and if he will make a statement on the matter. [21807/16]
The Minister of State will be aware of a plan by News Corporation to take over seven Irish radio stations. I understand that for that to happen the consent of the Minister of State is required. I want to give him an opportunity to outline to the House his views and what he will take into account in arriving at that decision.
Under the amended Competition Act 2002, proposed mergers or acquisitions meeting certain criteria must be notified to the Competition and Consumer Protection Commission, CCPC. The CCPC must then examine the notification and decide if the merger may proceed on competition grounds. Media mergers which have received the CCPC's determination to proceed must also be notified to me as Minister.
Upon notification, a phase 1 examination of the merger is carried out by my Department. This examination is guided by the relevant criteria laid out in the legislation and by the Guidelines on Media Mergers, both of which are available on my Department's website. Following this examination, I have three options under the legislation, which are to allow the merger to proceed, to allow the merger to proceed with conditions or to ask the Broadcasting Authority of Ireland, BAI, to conduct a more in-depth or phase 2 examination of the proposed merger. If the latter is the case, then the BAI will provide me with a report detailing its recommendations on the matter. It is also possible for me, as Minister, to establish an advisory panel to provide an opinion to the BAI on the application of the relevant criteria to the media merger in question.
Following receipt of the BAI's report and recommendations, I must then make a decision either to allow the merger to proceed, to allow it to proceed with conditions or to refuse to grant my consent. I am aware that the case referred to by the Deputy is being considered by the CCPC, however it would not be appropriate for me to provide further comment at this time until the process is completed.
I am fine with that. That is good.
Telecommunications Infrastructure
Michael Collins
Question:4. Deputy Michael Collins asked the Minister for Communications, Energy and Natural Resources to take action with regard to mobile telephone operators (details supplied). [21837/16]
I acknowledge the work of the Minister of State on broadband since taking office. Another issue I wish to discuss is the lack of mobile telephone coverage. There are very serious issues, in particular, in rural Ireland where mobile telephone coverage has reduced considerably in recent months instead of progressing. Masts have been taken down in several parts of west Cork, leaving areas without any mobile telephone coverage. I would appreciate if the Minister of State would comment.
Telecommunications service providers operate in a fully liberalised market under licences provided by ComReg. The management of the radio spectrum is a statutory function of ComReg. Notwithstanding the independence of ComReg, I am critically aware of the frustration currently being experienced across Ireland, where mobile networks are not always delivering the services people expect. There are a variety of reasons for this. Data usage in Ireland has increased by 500% in the last five years; current 3G and 4G upgrades have resulted in temporary outages in some areas; there are planning and siting issues for mobile masts and antenna; there are issues with the performance of individual handsets and particularly smart phones; and there is the issue of in-house insulation.
The telecommunications sector has invested over €2 billion in the past four years, in modernising networks including significant upgrades to 3G and 4G services. Notwithstanding this investment, the programme for Government recognises the ongoing frustration of consumers with the quality of mobile telephone and broadband services. In line with the programme for Government my colleague, the Minister for Arts, Heritage and the Gaeltacht, Deputy Heather Humphreys, and I will establish a mobile telephone and broadband task force in the coming weeks. This will consider immediate measures to address telecommunications deficits in rural Ireland. The task force will involve a number of Departments and agencies, as well as engagement with ComReg and telecommunications operators. I encourage members who have suggestions to submit them to me. I have received some very useful submissions and contributions from Members of this House. Measures arising from the task force will be implemented by the Government as a matter of priority.
I expect we will bring these proposals to Government before the end of 2016 on foot of the task force's report.
Under the programme for Government, the Minister, Deputy Heather Humphreys, is also establishing two regional action groups. Working with local authorities, local enterprise offices, Leader groups and other relevant agencies, these groups will help to accelerate the roll out of broadband and mobile telecoms services at local level.
I welcome the news of the establishment of this task force but a recent merger of two major mobile phone companies in this country will result in a loss of 880 masts. That is a serious loss, especially in rural communities. I ask that the Minister urge ComReg to step in to stop the taking down of those masts. One company had 1,880 and the other had 1,300, totalling more than 3,100. Now there will be a loss of 880, which is incredible. There has been a major loss of mobile reception and people who were experiencing difficulties in quite a number of areas prior to this, now have no mobile reception. West Cork, in particular, has been hit very badly. I refer to places such as Corran, Skibbereen, Bantry, Kilbrittain, Bandon and the towns throughout that region. It has not only impacted on one area, the three peninsulas of Mizen, Sheep's Head and Beara have also been hit. I presume the experience has been the same in other parts of rural Ireland. I urge the Minister to get ComReg to step in to stop this. There are planning issues around erecting masts but existing masts are now been taken down.
The Minister, Deputy Humphreys, is establishing two regional action groups. These new structures at both national and local levels are designed to address, as far as possible, immediate frustrations about the quality of mobile phone and broadband coverage as well as the roll out of the national broadband plan over the next 12 months. My Department is liaising closely with the industry and the other relevant Departments and agencies to assist in the commercial deployment of telecommunications networks. The key focus in the short term will be on the mobile phone and broadband task force.
To answer the Deputy's question, with respect to 4G roll out, Vodafone has 98% 3G coverage and 95% 4G coverage; Meteor has 99% 3G coverage and 75% 4G coverage; and 3 has 96% 3G coverage and 73% 4G coverage. However, the difficulty is that this is coverage of the population rather than of the geographic area of the country. Approximately 70% of premises are on about 4% of the landmass of the country and therein lies the problem. There is an issue with the way the current licences are structured. It is all about population coverage rather than geographic coverage. This is historic problem not only in Ireland but right across Europe. We will have to examine this issue when it come to the next round of licences.
I thank the Minister for his response. I look forward to working with the task force or in any other way to help improve mobile phone and broadband coverage. I am strongly of the view that those issues, broadband and mobile phone coverage, should be discussed at the same time as there can be solutions around both areas. I look forward to that happening in the coming months.
The Deputy is right. It is my intention to deal with the mobile phone, wireless and broadband issues in the short term. As soon as we get recommendations from this group, I intend to start acting on them. It will not be a case of waiting until December to do it. However, an issue that cannot be ignored is that some local authorities take a very different approach to the issue of antennae and mobile phone masts. For example, in my constituency, the development contribution in County Roscommon for the construction of a telephone mast is zero while across the River Suck in the other part of my constituency in County Galway, it is €20,000. The levels of refusals in the Deputy's adjoining county of Kerry have been significant. First time grants in County Kerry for telecommunications antennae from Vodafone, which are the lowest in the country, are 25% and yet in Cork, the figure is 87%. Surely the planning process in County Cork is not that different from County Kerry.